Bitcoin Price Potential

The co-founders of the blockchain analysis platform Glassnode are discussing how Bitcoin (BTC) can reclaim six figures and more.

Jan Happel and Yann Alleman, co-founders of Glassnode and Swissblock, who share the social media handle Negentropic, begin by drawing parallels between BTC’s current situation and a similar scenario from a few years ago.

> “Let’s look at the period from December 2020 to February 2021, which corresponds to a similar cycle phase and comparable price action. At that time, the outflow of liquidity coincided with a price correction, but network growth persisted. Likewise, when the price stabilized and a new influx of liquidity began, the price rebounded strongly.”

According to Negentropic, liquidity could be the crucial factor in driving a Bitcoin price increase.

> “This suggests that we could potentially see a price pump once liquidity flows back into the market and the price does not drop to lower levels as long as network growth remains at bullish levels.”

In an accompanying Swissblock post, the market intelligence firm states that profit-taking needs to ease before BTC can rise again.

> “Profit-taking above $90,000 and near $100,000 has persisted among market participants (no surprise, as long-term holders continue to take profits). However, this selling pressure is gradually losing intensity. For price momentum to resume within the bullish territory, profit-taking must stabilize, and we need to avoid large volumes of selling that create spikes on the chart.”

BTC is currently trading at $92,077, down 1.7% on the day.

Source: Negentropic/X